Author Archives: Pancard

The month of September, 2012, could easily be a month of some turmoil in the state of Punjab, with the Punjab Government directing all employees and officers posted at Punjab Civil Secretariat to deposit PAN copies. PAN is required for the deduction of Income Tax from the salaries of Secretariat employees, and hence, an official spokesperson made it public that officers and employees in the Punjab Civil Secretariat need to submit copies of PAN cards in person with the account branches. In case of IPS and IAS officials, the responsibility of submitting PAN information was to be borne by the personal staff.

The importance of PAN card has been discussed innumerable times, and quite logically so. We’ve also discussed the dangers of having duplicate PAN cards, and the penalties that you may have to bear. Also, we have explained as to how important it is to be careful with your PAN card. Now, let us tell you an interesting and bizarre story.

A PAN number for an Indian is as good as a social security number of a US resident. However, the Income Tax department has seemingly committed a blunder in issuing the same PAN to two different individuals. PAN is supposed to be a fingerprint! Seems like the IT Department is in for an embarrassment.

ADGPS2143H has suddenly become the most interesting PAN in the country, with two different individuals having this Permanent Account Number. The troubled persons who have been put into a sticky situation because of matching PAN live in Jaipur and Haridwar respectively. The problem became evident when Rajesh Kumar Singh, a resident of Jaipur received a call from his namesake living in Haridawar. Rajesh Singh of Haridwar had earlier been intimated that a loan of Rs 5 lakh had been sanctioned to him on his PAN number from an HDFC branch in Jaipur. This person had never been to Jaipur all his life! Naturally, he was confused, and even more so as he had applied for a loan, although not in Jaipur.

Rajesh Kumar Singh of Jaipur, an assistant engineer with RIICO, was also taken aback when he heard the news from the Rajesh Singh of Haridwar. This is not where the confusions and the similarities end. Both these guys are named Rajesh Singh. Both of these have their father’s name as, Mohan Singh. Both were born on December 1, 1970. And of course, both had the same PAN! Rajesh Singh (the guy in Jaipur) has sought the cancellation of his PAN to avoid any problems in the future.

Before we explain this latest development pertaining to the rules about PAN requirements in terms of mutual fund investments, we will give a quick recap of the legal fabric that existed before this latest ruling from SEBI. What used to happen earlier was that a PAN was not compulsorily required, up to investments of Rs 50,000 in all mutual funds, per year.  However, when the KYC norms were put into place (Know Your Customer norms) for mutual funds investments, the government also made the furnishing of PAN information necessary (SIP investments were exempt). Investors can use their voter ID card, government ID card, passport, or driving license for KYC verification. However, in September 2012, the Securities and Exchange Board of India (SEBI) has declared that quotation of PAN will not be compulsory for investments in mutual funds up to Rs 50,000. There are as many as 44 mutual fund houses, which means that without the furnishing of PAN information, a total of Rs 22 lakh can be invested in mutual funds.

We’ve repeated this so often – Get yourself a PAN card if you wish to make the most of your financial transactions in India. Here, we present a brief on a news item of the month of January, 2010. This news piece effectively captures the essence of having a PAN card in India. The Government of India sent a notification in the initial months of 2010, saying that a tax of 20%, or the prescribed rate, whichever of the two was higher, would be levied on all transactions of individuals liable to TDS with no PAN card available. The new provision was to come into effect from April 1, 2010, and the notification created a lot of buzz in the country.

All assesses have to quote a PAN with their bills and vouchers, including documents exchanged in financial transactions. The finance ministry already made it clear that deductees should be encouraged to furnish their PAN details so that deductors did not face any hassles, otherwise their deductees would have to bear a higher TDS rate. Also, even non residents have to comply with the instructions of the notification in all payments that are liable to TDS. The ministry said that those without PAN should apply for the same before 31st March, 2010, so that they did not have to pay bear high TDS deduction rate. Also, the notification meant that deductees could not get ‘no tax liability certificates’ issued from assessing officers if they did not have a PAN.

1. I need to file return on income. Is a PAN necessary?

Section 272B of Income Tax Act, 1961 defines that PAN needs to be quoted while filing income returns. Otherwise, a penalty of Rs 10,000 can be imposed.

2. How does the quotation of PAN on concerned transactions get ensured by the Income Tax Department?

The Income Tax department considers it a statutory responsibility of recipients of CBDT notified economic and financial transactions documents to see to it that PAN is quoted in the concerned documentation, as laid down by Section 139A(6).

3. I could quote any random PAN number to get my documents accepted. How do the authorities verify PAN?

https://incometaxindiaefiling.gov.in/portal/knowpan.do

This is the PAN verification platform provided by the department of Income Tax in India. Even you can use it to verify PAN details.

4. Will it work if I submit a PAN application on a blank paper, giving all information?

No, it won’t. Your application will be rejected. Only submit a PAN application on the relevant form, and that is Form No. 49A. You can easily obtain the form from the Income Tax department’s website, and also from UTILIS and NSDL websites. Local printing shops could have a copy of this form. Or, visit a TIN facilitation center and obtain the form. However, a blank paper will not be accepted.

5, Can I submit a PAN application online?

Yes, Internet-based applications have been facilitated now. In fact, you can make requests to change data on PAN cards, or get duplicate cards issues, all through Internet. Visit the NSDL portal, that is https://tin.tin.nsdl.com/pan/index.html (or, you can also visit the UTITSL portal,  and follow the procedure to submit online application. For application of PAN card for Indian address, a fee of Rs 94 has to be paid, and for a foreign country address, the fee is Rs 744. Payment for the application can be easily done through credit or debit card, or net banking.

6. Can I apply for PAN card in tatkal?

There is no tatkal facility for PAN card applications.

How do I find the address of an IT PAN Service Center or a TIN Facilitation Center?

Use the Income Tax department website, that is www.incometaxindia.gov.in, or the UTITLS website, or visit the Income Tax Office or the NSDL office of your city to know the location.

7. What happens if I end up submitting an incomplete form?

IT PAN Service Centers and TIN Facilitation Centers will not accept any incomplete application. However, they’d be more than willing to assist you in filling the application form completely and correctly.

8. I need to fill in Assessing Officer code, where do I find it?

The IT PAN Service Center, TIN Facilitation Center, or the Income Tax Office are places from where you can get the Assessing Officer Code.

9. How does a person who can’t sign the application apply for a PAN?

For all such people, the procedure is to make the left thumb’s impression in the places meant for signatures. Then, the form needs to be attested from a Magistrate, Gazetted Officer or Notary Public with the official seal or stamp.

10. Do all females have to mention their father’s name on the form?

Yes, all female applicant’s, irrespective of their marital status, need to mention their father’s name on the form.

11. What happens if I do not mention the contact number on the form?

Your application will not be rejected without a telephone number, but certainly, the communication between you and the approving authorities becomes quicker if you mention your telephone number on the form.

12. If an application has to be submitted on the behalf of a minor, or a non-resident, what is to be done?

For all such cases, including lunatics, idiots, and court of wards as well, the Section 160 of the Income Tax Act, 1961 has made provisions under which representation for these people can be done through a representative assessee.

13. Can I get a new PAN card, with the same number?

Again, visit the TIN Facilitation Center or the IT PAN Service Center and fill the form for Request For New PAN Card or/and Changes In PAN Data, and pay the fee of Rs 60 plus taxes to apply for duplicate PAN. Of course, you will have to surrender the earlier PAN.

14. I do not have a PAN, but I need to pay my taxes. What should I do?

Get a PAN! You can get a PAN allotted in about 15 days. However, you can have one in 5 days as well if you apply online and pay through credit card. The earlier you get a PAN card, the better it will be for you.

The PAN Card is an extremely important financial document for Indian citizens. Every person with taxable income in India needs to own a PAN card. Sometimes, there may be a few problems that may arise. People may not receive their PAN cards and PAN numbers even after applying. Sometimes, they may receive the PAN number, but may not get the PAN card. Again, sometimes, the application may be returned undelivered. The name may be printed wrong, the photo may be wrong, or other essential details may be wrong. In such cases, a complaint needs to be filed. In order to help the people to register and track their complaints without any hassles, the Income Tax Department of India has created a help website. The website, called Sparsh India, helps the complainant to register and track his or her complaint. This is a very useful website because it saves the complainant’s valuable time.

The complainant can file their grievances online at the link that has been given below:

http://incometax.sparshindia.com/pan/PAN.asp?id=1

In order to check the status of the complaint that the complainant had registered, he or she can visit the following link:

http://incometax.sparshindia.com/pan/PAN.asp?id=2

For address proof, a copy of any of these documents will be needed.

Passport’s photocopy

A print out of bank account statements, bank account being in India.

Residential Permit. This document is issued by State Police Authorities

Registration Certificate. This is issued by Foreigner’s Registration Officer.

Indian Government’s PIO card, means a copy of Person of Indian Origin card.

NRE bank statement copy. The statements must show a minimum of two customer induced transactions, within a period of not more than past 6 months, and attested by the manager of the bank where the account is opened. Apart from the manager, the statement copy can be attested by the Consular Office, the Indian Embassy, or High Commission/Apostille.

Copy of Company issued appointment letter, or employment contract. If the provided office address is in India, then five more documents are needed. These are:-

Visa application’s copy

Granted Visa’s copy

Online verification of PAN is very convenient to do; one has just got to visit the following link and fill in some details that are mentioned on the PAN card. The link is:-

https://incometaxindiaefiling.gov.in/portal/knowpan.do

The details include your name, father’s name, and the D.O.B. PAN applicants can make use of this great service from the Income Tax authorities to know their PAN, and similarly, any entity receiving a PAN application copy can use this feature. Financial users and government body users can make use of bulk PAN verification feature, and for that, they have to write in at DIT(S)-III, Directorate of Income-tax(Systems), E-2, ARA Center, Ground Floor, Jhandewalan Ext., New Delhi – 110055.

The section 139A from the Income Tax Act, 1961 lays out the answers to all legal questions that can be asked about the functioning of PAN card, right from the application for the same, to the penalty of using multiple PANs. The section defines as to who can apply for a PAN card, what all is required for someone to be able to apply for PAN, how the allotment of PAN is to be done, the transactions and business dealings where the parties involved should declare their PAN, how PAN is to be used in TDS certificates and returns, conditions that one individual can possess one PAN, and how an application for PAN allotment is to be made.

Rule number 114 in the Income Tax Rules, 1962 lays down the manner in which PAN application is to be made. In 2003, this rule got amended and also defined the guidelines about the documents whose copies are to be submitted as proofs of identity and address, along with the application for a PAN.

Rule number 114B presents a list of all those transactions in which a PAN number should be quoted. For all those who do not have a PAN, there is a provision that they can furnish a declaration in form number 60. Also, rule number 114C enlists all those persons for whom the section 139A does not hold. Such persons exempt from compulsory quoting of PAN are those who can furnish form 61 to show agricultural income, and Government bodies and Consular Offices, when they are making the payments.

Under section 272B, a penalty of Rs 10,000 can be levied on defaulters who fail to comply with the guidelines in Section 139A.

In a country as large and populous as India, it is extremely difficult for one agency to collect applications, process them, and issue PAN cards. The income tax department is responsible for issue of Permanent Account Number (PAN). However, the department has authorized the UTI Infrastructure and Technology Services Limited (UTITSL) and National Securities Depository Limited (NSDL) to collect PAN card application forms, issue new PAN cards and dispense other PAN-related services.

The UTITSL has opened several IT PAN service centers in various parts of the country where there are income tax offices. Application forms for new PAN cards and change request application (CSF) forms are available at these centers. You can login to the UTITSL website and search for an IT PAN service center in your locality. Choose the state and city from the drop down menu available on the website.

Application for reprint of existing PAN cards can also be made if the PAN card is lost or gets soiled. Correction in the PAN details like name of the applicant, father’s name, date of birth, address, or contact number can be made by applying in the proper manner through the IT PAN service centers. Staff in the IT PAN service centers will assist you in filling the form 49A for new PAN cards. Fees for issue of new pan card, reprinting, or change request can be paid in the IT PAN service centers.

Tax information Network (TIN) facilitation centers set up by the NSDL in various cities and towns are also authorized to collect new PAN card application forms and dispense other PAN related services. Applications for rectification of the names and/or address in the PAN card can also be made through these centers. TDS and TCS returns from collectors and deductors can be received in these centers.

You can go the income tax department website (www.incometaxindia.gov.in) or UTITSL website (www.utitsl.com) and search for an IT PAN service centre or TIN facilitation center in a locality that is nearest to you in your city. There is a separate form for resident Indians and nonresident Indians. You can submit the completed application form, cheque or demand draft, and other supporting documents in the centre. You will be given an acknowledgement form with a coupon number that will enable you to track the status of PAN card application online.